AI's Secret Nuclear Addiction

The world needs as much electricity as it can get. 

Major global governing bodies would prefer it be as clean as possible. 

We’ve long known that meant using more nuclear energy. Everyone else is now waking up to that profitable fact.

Last month in Georgia, the Vogtle 4 nuclear reactor was connected to the grid by Southern Company (NYSE: SO). It was the second of two new Westinghouse AP-1000 reactors added to the site, making Vogtle the largest nuclear power plant in the US as well as the largest generator of carbon-free electricity.

It’s not enough. 


clean energy revolution


And to inspire other utilities to build nuclear reactors, the federal government wants to lead by example. The Biden administration wants to use funds from the Inflation Reduction Act to assist the Tennessee Valley Authority (TVA) in building another new AP-1000 as well as multiple BWRX-300s, which are smaller reactors designed by GE Hitachi. That would be in addition to the seven reactors the TVA already operates.

Jump over to Texas, where businesses are flocking to build massive factories and data centers that have a gaucho’s thirst for electricity. One of the companies providing it is Vistra Energy (NYSE: VST), which was added to the S&P 500 this week. It is up 116% so far this year, outperforming 499 of the other stocks in the index, including Nvidia. 
Vistra is being bid up, in part, because of its $6.3 billion acquisition of Energy Harbor Corp. earlier this year. The combination gave Vistra possession of the second-largest nuclear fleet in the US. 

Also this week, OpenAI co-founder Sam Altman brought his nuclear fission company, Oklo (NYSE: OKLO), public this week. He wants it to power the types of data centers that OpenAI and other artificial intelligence companies need to run their AI models and services. 

A nuclear renaissance is approaching crescendo. 

Acceptance of — and perhaps reliance on — nuclear energy is growing. And a reliance on nuclear energy is a reliance on uranium. 


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On the supply side, the Senate approved a ban on Russian imports of uranium in late April. According to Reuters

The Senate passed the measure by unanimous consent, meaning that no senators objected to it. The House of Representatives passed the bill in December.

The legislation would ban the imports 90 days after enactment. It contains waivers in case there were supply concerns for domestic reactors. The bill also frees up $2.7 billion passed in previous legislation to build out the domestic uranium processing industry. U.S. nuclear power plants imported around 12% of their uranium from Russia in 2022, according to the U.S. Energy Information Administration.

Biden is expected to sign the uranium imports bill into law.

That’s nearly four million pounds the US is going to have to come up with. No small feat considering it produced 0.2 million pounds in 2022.

sources of uranium from eia.JPG

Source: U.S. Energy Information Administration

Right on cue, spot uranium prices have broken out higher from their sideways pattern of the last two months to trade at $93.60 per pound. 

And the related uranium stocks have moved higher as well. 

Over the past year, the Global X Uranium ETF (NYSE: URA) is up 48%, outperforming the S&P by nearly two times. It’s up four times higher over the past month as uranium stocks break out anew. 

And uranium stocks we’ve been recommending are up much more than that.

See why uranium stocks — and which ones — are poised for a continued run here.

Call it like you see it,

Nick Hodge

Nick Hodge
Publisher, Daily Profit Cycle